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Cineworld shares plunged on Monday on a deal that’s intended to wipe out existing shareholders as it took its theaters in the U.S., the U.K. and Ireland off the market.
Cineworld said it is restructuring its roughly $5 billion in debt and will come out of Chapter 11 bankruptcy if its deal is approved. Its creditors will receive roughly $800 million of discounted equity while providing $1.5 billion in new debt financing.
The operator of Cineworld, Regal and Cinema City chains said it’s taking its U.S., U.K. and Ireland theaters off the market while marketing the rest of its business, as it has theaters in Poland, Romania, Hungary, the Czech Republic, Bulgaria, Slovakia and Israel.
Cineworld
CINE,
shares plunged 35% to 2 pence per share. The stock traded over 300 pence per share as recently as 2019.
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